Final Exam Key Facts Flashcards
1
Q
Balance of Payments is…
A
currency inflows - currency outflows, deficit implies that more currency is being supplied/spent, rather than accumulated.
2
Q
Inflation is (in terms of composition)…
A
55% driven by commodity prices, 45% services. Current inflation low due to crashes in commodity prices caused by weak China economic data.
3
Q
Why was the 2008 crisis much more severe in terms of credit?
A
Credit market implosion during the 2008 crisis. No counterpart in depression.
